JSE flat as market eyes US-Iranian tension

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Risk-appetite is expected to be limited at the start of this week, as investors eye Middle-Eastern developments, and wait for a US-China meeting

The JSE was little changed on Monday morning, with losses by banks offsetting gains by miners, amid risk-off trade on global markets.

Tension between the US and Iran was serving to keep trade cautious, with the US indicating it was seeking an international response to Iran's destruction of a US drone last week. US President Donald Trump has indicated that he will implement new sanctions on Iran, seeking to reduce that country's exports of oil to zero.

Besides the Iranian tensions, the upcoming Group of 20 meeting brings the trade war between the US and China back on the table, said London Capital Group senior market analyst Ipek Ozkardeskaya in a note. While Trump and Chinese President Xi Jinping are expected to meet at this week’s summit in Osaka, the chances of a trade deal between the two countries remain slim, he said.The all share was down 0.08% to 58,896 points and the top 40 0.13%. Banks had fallen 1.31% and general retailers 1.15%.

Life Healthcare was down 0.13% to R22.56. It said earlier that it raised about R3.7bn by selling its 49.7% stake in Max Healthcare Institute in India.

 

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